Spirent has entered into an agreement for the sale of the equity and assets of its Sensing Solutions group, and certain related receivables, to a company formed by GE Industrial Systems, a division of General Electric Company, for a cash consideration of $220 million.
The transaction, which is expected to complete by the end of November, is subject to certain conditions including regulatory approvals. The net proceeds of the sale, after deduction of taxation and costs, will be used by Spirent for general corporate purposes including the reduction of debt.
The sale is a further step in Spirent’s increasing focus on communications related activities. Under the terms of the deal, all of the approximately 2,000 employees in the Sensing Solutions group will transfer with the business.
The Sensing Solutions group comprises three principal divisions: Thermometrics, General Eastern Instruments and Kaye Instruments.
For its part, Thermometrics is a provider of temperature measurement and sensing solutions principally in the automotive and medical sectors, while General Eastern Instruments supplies products for the measurement of humidity and pressure. Kaye Instruments makes products for thermal calibration, validation and monitoring, primarily in medical device sterilisation and pharmaceutical production.
Combined Sensing Solutions revenues for the year to 31 December 2000 were £90.7 million, and for the six months to 30 June 2001 were £46.6 million. In the financial year ended 31 December 2000, the operating profit for the combined Sensing Solutions businesses totalled £11.3 million. Operating profit for the half year to 30 June 2001 was £4.6 million.
At 30 June 2001, the book value of the net assets to be disposed of was £59.6 million, with related goodwill previously written off on acquisition of £64.8 million.